SEB Strategy Fund - SEB Strategy Opportunity primarily has Swedish investors. When SEB Strategy Fund - SEB Strategy Opportunity was established, the possibilities for unit classes under Swedish law were limited. Since then, the possibilities for unit classes has increased, most recently in 2018. The purpose of this merger is mainly to modernize the fund design, and it has been identified that a Swedish domiciled fund makes more intuitive sense for a fund that primarily targets Swedish retail investors. For that reason, modernization of the merging sub fund will take the form of a merger with a new Swedish fund, rather than a redesign.
SEB Active 55 is a new fund. It is similar to SEB Strategy Fund - SEB Strategy Opportunity in many ways but offers new features including a benchmark, a relative return objective and a defined interval within which the global equity holdings may vary.
This is a merger by absorption whereby the merging sub fund’s holdings - assets and liabilities - are absorbed by the receiving fund and the merging sub fund will cease to exist. SEB Investment Management AB bears any costs related to legal, advisory and administration costs that arise in relation to the merger. The receiving fund is a Swedish UCITS fund. Like the merging fund, it is a common fund that issues units rather than shares and does not hold annual general meetings for its unit holders.
Prior to the merger, the fund manager may gradually adapt the portfolio of the merging sub fund to align with the investment policy of the receiving fund. This adaption is done to the extent permitted by law and by the prospectus of the merging sub fund and may incur transaction costs. Any cash transferred from the merging sub fund to the receiving fund is invested according to the receiving fund’s investment policy. Any accrued income in the merging sub fund is transferred to the receiving fund.
- Cut-off time 15:30 on 4 November 2021: The deadline for investors in the merging sub fund to redeem their units. No subscriptions, redemptions or transfers are accepted after this time.
- 12 November 2021: The net asset value for the merging sub fund is calculated
- 15 November 2021: The merger takes effect. This day is the first order date for SEB Active 55.
How you are affected
Unitholders who do not redeem their units in the merging sub fund before cut-off time 15:30 on 4 November 2021, will automatically receive units in the receiving fund. Redemption can be made free of any charges but note that redemption can result in taxation. Kindly consult your financial advisor.
Comparison of SEB Strategy Opportunity and SEB Active 55
Domicile: The merging sub fund SEB Strategy Opportunity is domiciled in Luxembourg. The receiving fund SEB Active 55 is domiciled in Sweden. Generally, there should not be tax consequences for investors due to a cross border merger such as this. However, we cannot guarantee this and therefore we encourage you to confer with your financial advisor.
Investment objectives and policy: The merging sub fund and the receiving fund are both actively managed and aim to create long term capital growth. The receiving fund specifically aims to outperform its benchmark. It can also invest 40% to 70 % of its holdings in global equities. The merging sub fund does not follow a specified interval for investing in equities.
Sustainability: The merging sub fund and the receiving fund both follow SEB Investment Management AB’s sustainability po icy and promote sustainability-related properties via integrated sustainability analysis as part of investment decisions, and the exclusion of companies, business models and products that are deemed to affect the climate, society or stakeholders negatively. This active corporate governance process aims to drive and influence the development of companies in which we invest. This means both funds belong to the sustainability category Article 8, as defined by the EU. Funds categorized as Article 8 promote environmental or social characteristics. These funds invest in companies that work actively to manage risks and opportunities related to sustainable development from an environmental and social perspective. The funds are open to dialogue with companies regarding improvements. The funds exclude companies that have a negative long-term impact on sustainable development. For detailed information, see sebgroup.com / Integrate.
Main categories of financial instruments: Equities, interest bearing securities and funds, not necessarily in that order, for both the merging sub fund and the receiving fund.
Benchmark: The merging sub fund does not have an official benchmark. The receiving fund has a composite benchmark:
- MSCI AC World Index Net Return 35%, a reinvesting, global equity index
- VINX Benchmark Cap Net Return Index 20%, a reinvesting Nordic equity index
- OMRX Bond All 15%, a long term Swedish fixed income index*
- OMRX T-Bill 15%, a short term Swedish fixed income index*
- Barclays Global Aggregate Corporate 7.5%, a global index for corporate bonds*
- Barclays Global High Yield Corporate 7.5%, a global index for corporate bonds with lower credit ratings*
*These indices are in the same currency as the unit class, meaning some indices are hedged.
Currency hedging of unit classes: The merging sub fund applies full hedging. This means it aims to hedge the entire portfolio of unit classes in other currencies than SEK against currency fluctuations between SEK and the currency of the unit class. The receiving fund applies partial hedging. This means it aims to hedge parts of the portfolio of unit classes in currencies other than SEK against currency fluctuations between SEK and the currency of the unit class.
Risk profile: The merging sub fund is classed as risk level 5 on the SRRI scale (where level 1 is lowest and 7 is highest). The receiving fund is classed as risk level 4. Note that both risk level 4 and 5 indicate a medium level of risk for value changes. The SRRI category may change over time. Additionally, both are subject to credit risk, counterparty risk, liquidity risk, operational risk, currency risk, derivative risk, interest rates risk.
Fees: The management fees for the two funds are the same for each respective unit class. However, the ongoing charges are estimated to be somewhat higher (0.05% for most unit classes) for the receiving fund, reflecting estimated underlying costs in the future portfolio composition. For details, see the table of unit classes, below. Ongoing charges for all funds can change over the course of time. Investors are encouraged to check the fund’s KIID on our websites for up-to-date figures.
Recommended investment period: The merging fund is appropriate for investors who do not plan to withdraw their money within five years. The receiving fund is appropriate for investors who do not plan to withdraw their money within three years.
SEB Investment Management AB is the management company for both the receiving fund and the merging sub fund. The depositary for the merging sub fund is Skandinaviska Enskilda Banken AB, Luxembourg branch and the depositary for the receiving fund is Skandinaviska Enskilda Banken AB. The Bank of New York Mellon SA/NV, Luxembourg Branch is the central administrator for both the merging sub fund and the receiving fund. EY Luxembourg is the auditor for the merging sub fund and EY Sweden for the receiving fund.
We strongly encourage you to read the key investor information document for the receiving fund, attached. A comparison of the merging sub fund and the receiving fund is also attached. Product documentation for the merging fund is available in the Prices & Facts list on www.sebgroup.lu.
The terms of the merger, the depositary statement and the auditor report, prepared by Ernst & Young AB, will be available, free of charge, on request from our registered office.
For more information, kindly see the attached pdfs:
Past performance does not guarantee future performance. The value of investment funds and other financial instruments may rise as well as fall and there is no guarantee you will recover your original investment. Key investor information documents and prospectuses are available on www.sebgroup.lu/funds.